GSA Reports Global LTE Network Commitments Pass 100

The Global mobile Suppliers Association (GSA) has revealed there are now 101 operator Long-Term Evolution (LTE) network deployments in progress or planned, in 41 countries across the globe. The number of network commitments is 71% higher than the GSA reported in a similar survey six months earlier, as ramping demand for mobile broadband and data services drives operator investment (see World: 4 March 2010: GSA Report Confirms 59 Operators in 28 Countries Committed to Deploying LTE).

The GSA says the figure includes three LTE systems that have launched commercial service—in Sweden, Norway, and Uzbekistan. In total, the report found 132 operators in 56 countries are investing in LTE, comprising:

• 101 LTE network commitments in 41 countries
• 31 additional pre-commitment LTE trials

The GSA estimates up to 22 LTE networks will be in service by end 2010, and around 50 LTE networks will be in service by end-2012.

The GSA said the report shows how the pace towards LTE has quickened because of increasing numbers of operator trials and announcements and positive actions by several regulatory bodies around the world, particularly in terms of freeing up and allocating spectrum such as 2.6 GHz and in the digital dividend (700 MHz, 800 MHz) bands and the re-farming of existing spectrum, e.g. 900 MHz, 1800 MHz etc, for network launches.

The report also found that although the majority of LTE deployments are using the frequency division duplex (FDD) mode, there is still significant operator interest in the time division duplex (TDD) mode. LTE FDD and LTE TDD are complementary technologies and standardised by 3GPP.

Outlook and Implications

LTE is largely driving 4G growth, as it benefits from a relatively simple evolutionary path from 3G+ technologies like HSPA, and the technology continues to show huge promise, with fresh trials being announced almost daily. Data demand has become the key driver of network growth—and has helped to shield both operators and vendors alike from the worst of the economic downturn (see World: 13 August 2010: Global Mobile Data Traffic Triples in One Year—Ericsson).

Recent Regional Developments in LTE

• Western Europe: In Sweden, TeliaSonera announced last week that its LTE network in the city of Gothenburg has gone live, with average downlink rates of 85–90 Mbps being achieved, peaking at 100 Mbps (see Sweden: 26 August 2010: Telia Switches on LTE Network in Swedish City of Gothenburg). Although TeliaSonera still claims to be the only operator worldwide to offer commercial 4G services, in Sweden and Norway, it is unclear how many users this network actually benefits, with very limited global penetration of LTE-enabled handsets. Meanwhile, its Nordic rivals Tele2 and Telenor have formed an LTE joint venture and are set to launch their LTE networks in some 100 Swedish cities by the end of 2012 (see Sweden: 6 July 2010: Tele2 and Telenor to Bring LTE to 100 Swedish Cities by 2012). Elsewhere, in the United Kingdom, several operators have trialled LTE and the regulator has recently announced the long-awaited mobile spectrum auction, which will see licences issued in both the 2.6-GHz and 800-MHz (digital dividend) bands, will be launched before the end of 2011 (see United Kingdom: 29 July 2010: U.K. Government Confirms LTE/Digital Dividend Auctions "As Soon As Possible"). In Germany, a number of mobile operators including Telefónica O2 Germany and Deutsche Telekom are thought to be considering some form of partnerships to reduce LTE-related capital and operational expenditure, following the auction of 4G frequencies in May (see Germany: 25 August 2010: German Operators Mull Co-Operation on LTE Roll-Outs). In Italy, Telecom Italia has recently received permission from the government to use two 20-MHz blocks in the 2.5–2.6 MHz frequency band for the testing throughout 2010, as it hopes to verify LTE functionality and services (see Italy: 12 August 2010: Telecom Italia Launches Phase Two of LTE Trials).
• Eastern Europe and the CIS: MTS Uzbekistan announced the commercial launch of an LTE system at the end of July, the first in the Commonwealth of Independent States and Central Asia, initially in the city of Tashkent (see Uzbekistan: 30 July 2010: Coscom Launches LTE in Uzbekistan). In Russia, a lack of coherent policy on LTE does not currently augur well for deployment in the short term, as the leading operators seek clarity on a range of issues, including whether pilot zones for testing LTE can be allocated, whether and how frequencies in the 2.3–2.4 GHz range can be used for LTE in 22 Russian regions, and whether LTE frequencies will be allocated exclusively to the country’s "big three" mobile operators (see Russia: 16 August 2010: Regulatory Decisions on LTE Frequencies Indefinitely Postponed in Russia). In Poland, incumbent TP has confirmed it would bid for 4G frequencies in a forthcoming tender, which has been postponed to start in late 2010 (see Poland: 23 June 2010: Polish Regulator to Launch Single 800-MHz, 2.6-GHz Tender in Q4).
• Middle East: In the Middle East, U.A.E. incumbent operator Etisalat has recently successfully completed lab and field tests on its LTE trial network with ZTE, and there are a few other operators in the region looking at investing in LTE, with Zain in Bahrain and STC in Saudi Arabia on the way to launching the service (see United Arab Emirates: 25 June 2010: ZTE Completes LTE Tests for Etisalat).
• Asia-Pacific: In Japan, NTT DoCoMo looks set to be the first in the country to launch LTE, aiming to bring its next-generation network (NGN) live by the end of 2010 (see Japan: 30 June 2009: NTT DoCoMo Selects Alcatel-Lucent as LTE Backhaul Network Supplier). In China, China Mobile has started looking into the future technology migration path and is in active efforts to develop TD-LTE technology (see China: 12 July 2010: China Mobile and Ericsson Showcase TD-LTE Solution). In South Korea, the leading mobile operator SK Telecom has announced that it will roll out LTE services as early as 2011 (see South Korea: 19 August 2010: SK to Go LTE in 2011).
• Americas: In the United States, operator MetroPCS has announced plans to launch LTE in the cities of Las Vegas and Dallas in September, which should make it the first U.S. carrier to launch the technology commercially (see United States: 27 August 2010: MetroPCS to Launch LTE During September), while rival Clearwire is beginning its own trials (see United States: 5 August 2010: Clearwire Announces LTE Trial After 93% Q2 Revenue Gain). In Latin America, in Brazil the regulator has recently announced a new spectrum allocation for the 2.6-GHz band, which will become available in mid-2013 (see Brazil: 19 August 2010: Brazil's Anatel Confirms New Spectrum Allocation for 2.6-GHz Band). In Chile, the telecoms regulator Subtel has revealed plans to launch a 2.6-GHz spectrum tender before the end of the year, as incumbent operator Entel PCS has been testing LTE technology with Swedish equipment supplier Ericsson (see Chile: 19 June 2009: Entel to Begin LTE Trials in Chile).